Japan is likely to reduce the cost in its $1.6 billion deal with India for 12 Shinmaywa US-2 Amphibious Search and Rescue aircraft.
“We are considering reducing the price as much as possible for the aircraft deal with India as a fresh attempt to revive the negotiation.” Top Japanese defence ministry official told Times Of India.
The ShinMaywa US-2 is a Japanese large short takeoff and landing amphibious aircraft designed for air-sea rescue (SAR). This aircraft features numerous aerodynamic refinements, a pressurised hull, and more powerful Rolls-Royce AE 2100 engines. Probably, India deploys this aircraft in the Andaman Nicobar Islands.
However If the agreement takes place, it will have a major symbolic significance as a message to China about deepening defense and security cooperation between India and Japan, the official added.
“Our stance is that if this contract takes place, it will have a favorable impact on our relationship with China,” said the Japanese defence ministry official.
India and China, both are facing the problem of Chinese territorial aggression. “It is comprehensible that there are some consultations underway in India over pricing but there are several factors that determine pricing,” a Japanese Defense ministry said. “We are not doing it for profit but for our alliance with India. We try reducing the cost as much as possible” defense ministry added.
Japan is now hoping that there will be some progress in negotiations by the time Indian Prime Minister visits Tokyo later this year for the annual summit meet.